Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income Depreciation deducted on tax return in excess of depreciation expense Permanent differences (all related to operating income): Nondeductible portion of entertainment expense The applicable enacted tax rate for all periods is 25% What should Hobson report as income from continuing operations? $ 230 10 85 175 20

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Information for Hobson Corporation for the current year ($ in millions):
Income from continuing operations before tax
Loss on discontinued operation (pretax)
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income
Depreciation deducted on tax return in excess of depreciation expense
Permanent differences (all related to operating income):
Nondeductible portion of entertainment expense
The applicable enacted tax rate for all periods is 25%.
What should Hobson report as income from continuing operations?
$ 230
10
85
175
20
Transcribed Image Text:Information for Hobson Corporation for the current year ($ in millions): Income from continuing operations before tax Loss on discontinued operation (pretax) Temporary differences (all related to operating income): Accrued warranty expense in excess of expense included in operating income Depreciation deducted on tax return in excess of depreciation expense Permanent differences (all related to operating income): Nondeductible portion of entertainment expense The applicable enacted tax rate for all periods is 25%. What should Hobson report as income from continuing operations? $ 230 10 85 175 20
Multiple Choice
$167.50 million
$358.75 million
$230.00 million
$341.25 million
Transcribed Image Text:Multiple Choice $167.50 million $358.75 million $230.00 million $341.25 million
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